This translates to an EPS of S$0.598, against S$0.121 in FY2024

 

[SINGAPORE]   City Developments Ltd&rsquo s (CDL)   : C09 +4.91% second-half earnings rose more than four times to S$538.5 million, from S$113.5 million in the previous corresponding period.  

 

This more than trebled the group&rsquo s full-year earnings to S$629.7 million in the 2025 financial year, from S$201.3 million in FY2024.

 

The improvements were primarily driven by robust residential sales in Singapore and strong capital recycling gains, notably, from the sale of a 50.1 per cent stake in the South Beach mixed-use development in H2 to Malaysian partner IOI Properties Group, said CDL on Friday (Feb 27). The S$834 million transaction yielded a S$465 million gain.

 

Sherman Kwek, CDL&rsquo s group chief executive officer, said that strong residential sales in Singapore and accelerated capital recycling drove a &ldquo significant uplift&rdquo to the group&rsquo s earnings, despite the company facing a &ldquo challenging environment with ongoing economic uncertainties&rdquo in 2025.

 

&ldquo To maximise shareholder returns, we are actively reviewing our growth strategy, portfolio structures and capital allocation priorities,&rdquo Kwek said. &ldquo We have taken decisive steps to unlock value from mature and non-core assets, while selectively redeploying capital to drive growth.&rdquo

 

In early 2025, Kwek was embroiled in a public feud with his father and CDL executive chairman Kwek Leng Beng, but the matter was settled subsequently.

 

For H2, CDL posted an earnings per share (EPS) of S$0.598, versus S$0.121 in the year-ago period. EPS for the full year rose to S$0.694, from S$0.213 in the previous financial year.

 

Revenue for H2 stood at S$1.9 billion, up 11.1 per cent on the year from S$1.7 billion. Full-year revenue grew 9.7 per cent to S$3.6 billion from S$3.3 billion.

 

Better results across all segments

CDL said that all its business segments reported improvements for H2 and FY2025, with the property development segment being the biggest contributor to revenue growth.

 

For FY2025, that segment&rsquo s revenue rose 24.1 per cent on the year to S$1.2 billion, supported by higher contributions from Singapore projects such as The Myst, Norwood Grand and Union Square Residences. The sales of the Ransome&rsquo s Wharf site in London and the office component of Suzhou Hong Leong City Center in China also boosted revenue.

 

Notably, the hotel operations segment saw a 1.7 per cent increase in revenue and improvements in revenue per available room, said CDL. This was supported by new additions including The Mayfair Hotel Christchurch, acquired in January 2025, and the Hilton Paris Opera, acquired in May 2024. 

 

The group noted that the increase in gross profits for H2 and FY2025 was marginal, despite its revenue growth.

 

Its overall gross profit margin fell to 41 per cent for H2 and FY2025, from 45 per cent for both periods in 2024, as it was impacted by an S$80.5 million allowance for foreseeable losses that was made in relation to China development properties.

 

As at Dec 31, CDL maintained strong cash reserves of S$2.1 billion.

 

The board proposed a final dividend of S$0.25 per share, payable on May 19, after the record date on May 4. Together with the special interim dividend of S$0.03 per share paid in September 2025, the total ordinary dividend for FY2025 amounts to S$0.28 per share, representing a 40 per cent dividend payout ratio. 

 

It plans to divest UK development platform by end-2026, says group CEO Sherman Kwek

 

[SINGAPORE] City Developments Ltd (CDL) is taking a hard look at its global portfolio and capital allocation priorities under a sweeping strategic review, with plans to step up capital recycling and monetise assets. 

 

&ldquo To maximise shareholder returns, we are actively reviewing our growth strategy, portfolio structures and capital allocation priorities,&rdquo said group chief executive Sherman Kwek, at CDL&rsquo s earnings briefing on Friday (Feb 27). &ldquo We have taken decisive steps to unlock value from mature and non-core assets while selectively redeploying capital to drive growth.&rdquo  

 

The property giant engaged a global advisory firm around September last year to conduct a review of its strategy and operations. CDL expects to announce the outcome of the review by June this year. 

 

Key areas include rightsizing its portfolio and reviewing capital allocation priorities across geographies and asset classes, said Kwek, noting that formal targets will be provided once the review is completed. 

 

Among assets under scrutiny is CDL&rsquo s UK development legacy portfolio, which comprises five properties with a total carrying value of about S$800 million as at end-December 2025, after two assets were sold over the last two years. 

 

UK development platform

Acknowledging that the UK assets have &ldquo underperformed&rdquo , Kwek said that the group is looking to &ldquo recycle this capital as quickly as possible&rdquo and hopes to do so by the end of the year. CDL entered into the UK before Kwek assumed the CEO role, and had to engage an external manager then as it had no presence there. 

 

Currently, CDL&rsquo s five properties in the platform are a carpark at 28 Pavilion Road, Knightsbridge, acquired in 2013 Stag Brewery at Mortlake, bought in 2015 office building Development House acquired in 2016 residential project Teddington Riverside bought in 2015 and the six-unit Chesham Street in Belgravia. 

 

As at end-December 2025, 148 of the 224 units in Teddington Riverside and three of the six units at Chesham Street remain unsold. CDL is exploring options including bulk sales for Teddington Riverside, noted Kwek. 

 

For its China commercial properties, Kwek said that the market remains challenging, and added that the group will take a pragmatic approach, assessing each asset individually and even accepting &ldquo some haircuts on it&rdquo , where necessary, to unlock capital. &ldquo We have to continue to drive forward with our capital recycling &ndash it is not a one-off exercise. Capital recycling is very much a part of our business as property developer and asset manager.&rdquo  

 

CDL H2 net profit up over four times at S$538.5 million on improved showings across all segments

 

In 2025, CDL secured around S$2 billion in contracted divestments globally, outpacing around S$1.7 billion of acquisitions, which included three Singapore government land sales sites for about S$1.2 billion, and the Holiday Inn London &ndash Kensington High Street hotel for £ 280 million (about S$480.2 million). 

 

The contracted divestments included the sale of Quayside Isle @ Sentosa Cove for S$97.3 million, which was completed in February 2026. 

 

CDL on Friday posted a net profit of S$538.5 million for the second-half ended Dec 31, 2025, rising more than four times from S$113.5 million in the year-ago period. This more than trebled the group&rsquo s full-year earnings to S$629.7 million, from S$201.3 million in FY2024. 

 

Robust growth

Bottom line growth was primarily driven by robust Singapore home sales and strong capital recycling gains, notably from the sale of a 50.1 per cent stake in the South Beach mixed-use development to Malaysian partner IOI Properties Group for S$834 million. The deal generated a gain of S$473.1 million. 

 

As at Feb 25, 2026, CDL has sold 95 per cent of the 777-unit The Orie condo project in Toa Payoh. It also sold 87 per cent of the 706-unit Zyon Grand project, as well as 66 per cent of its 246-unit Newport Residences development. 

 

Including executive condos, the group sold 1,657 units for FY2025, raking in total sales value of S$4.35 billion &ndash marking the highest sales value in CDL&rsquo s history. In FY2024, the group sold 1,489 units with total sales value of S$2.97 billion. 

 

CDL said that it is confident in the Singapore residential market for 2026, supported by stable demand in public and private housing. With moderating interest rates, buying interest is likely to remain resilient. 

 

The group is preparing to launch its Lakeside Drive project in the third quarter of 2026 &ndash featuring five 17-storey residential towers with 570 units and commercial space on the first storey. CDL clinched the site in June 2025 at S$608 million or S$1,132.08 per square foot per plot ratio (psf ppr). 

 

It also plans to launch projects on the Woodlands Drive 17 and Senja Close EC sites in the first quarter of 2027. In August 2025, the residential heavyweight bid S$360.9 million or S$782 psf ppr for the Woodlands site, and S$252.9 million or S$771 psf ppr for the other plot. 

 

On the commercial front, Kwek said that the group has considered amalgamating Delfi with neighbouring Claymore Connect and Orchard Hotel to create a sizeable mixed-use development.

 

While CDL has taken some steps under the Strategic Development Incentive scheme, Kwek noted the project will not start in the near term to avoid putting financial strain on the group. 

 

&ldquo Looking ahead, the group enters its next phase of growth with renewed vigour. As we embark on our value-creation journey, we are well positioned to deliver sustainable growth and maximise returns for all shareholders,&rdquo Kwek added. 

The developer has been actively unlocking value, but is trading at a much steeper discount to RNAV than UOL

 

[SINGAPORE] Back in February last year, the market was agog as a power struggle erupted at City Developments Ltd (CDL) following the controversial appointment of two independent directors. Less than a year on, the property group&rsquo s once-depressed shares are rising fast &ndash and some analysts see &ldquo multiple tailwinds&rdquo lifting them much higher.

 

What is behind all the excitement? One obvious factor is that interest rates have been softening. Another is that new home sales rose strongly last year, and are expected to remain resilient this year. 

 

Yet, the strongest driver of CDL&rsquo s share price might be the growing excitement in the market about its potential to unlock value and boost its profitability. 

 

Like other Singapore-listed property groups, CDL was trading at a deep discount to its net asset value (NAV) early last year. With efforts by the Monetary Authority of Singapore (MAS) to reinvigorate the local market, investors have become more willing to take a chance on these seemingly undervalued counters. 

 

OCBC Group Research said in a report last week that several Singapore-listed stocks have already experienced significant re-ratings on the back of the MAS reform measures, and that investors might now focus on &ldquo value opportunities&rdquo within the market. 

 

&ldquo The real estate sector could attract renewed investor interest, given its current discount to NAVs, although the discount has narrowed,&rdquo the research house noted. 

 

&ldquo While concerns about the sector being a potential value trap have persisted in the past, we believe this perception is gradually diminishing as property players implement strategic initiatives to unlock value and enhance shareholder returns,&rdquo it added.

 

Since the beginning of the year, CDL shares have risen 13.8 per cent, while the Straits Times Index (STI) has gained only 3.9 per cent. 

 

Only two other constituents of the STI have fared better during the same period &ndash both of which are also property stocks. Hongkong Land is up more than 21 per cent, while UOL has advanced 17.2 per cent.

 

Work in progress

The value-unlocking moves at these property groups are something of a work in progress, though.

 

Hongkong Land has arguably come the furthest in this journey. In December, the group announced plans to inject its interests in One Raffles Quay and Marina Bay Financial Centre (MBFC) Towers 1 and 2 into a new private real estate fund. 

 

Dubbed the Singapore Central Private Real Estate Fund, this new investment vehicle will focus solely on commercial properties in the Republic. It is expected to have assets under management of S$8 billion at inception. 

 

Under its contractual obligations ahead of this move, Hongkong Land had also agreed to sell its one-third stake in MBFC Tower 3 to Keppel Reit at an agreed property value of S$1.45 billion.

 

In another significant move, Hongkong Land said in September that it would sell its Singapore and Malaysia residential development business for about S$739 million. The group had announced plans in October 2024 to exit the build-to-sell residential development business, and focus on ultra-premium integrated commercial properties in Asia&rsquo s gateway cities.

 

Hongkong Land has also been actively repurchasing its shares in the market. At the end of last year, it had fewer than 2.16 billion shares outstanding &ndash down nearly 3 per cent from more than 2.22 billion shares at the end of January 2023. 

 

Meanwhile, UOL&rsquo s public-listed subsidiary Singapore Land (SingLand) made headlines last month with an internal restructuring that could pave the way for a big value-unlocking move at its Marina Square complex. 

 

SingLand said in its announcement that it had submitted a revised proposal to the authorities in the second half of 2025 to transform this key asset into a &ldquo hyper-mixed development&rdquo , with the addition of a residential tower, a serviced apartment block and a mixed-use tower with hospitality, office and performing arts spaces.

 

DBS Group Research said last month that the redevelopment of Marina Square could result in a value uplift of more than 3.5 times for the property. 

 

In another interesting move, UOL said in September that it would divest all the freehold commercial strata lots at the Kinex mall, located along Tanjong Katong Road, for S$375 million. 

 

UOL is also part of a consortium that was awarded a S$1.5 billion tender earlier this month for an integrated residential and commercial site at Hougang.

 

Steep discount to RNAV

CDL has been similarly busy recycling its assets. Last month, the group said that it had agreed to divest its prime waterfront retail asset, Quayside Isle @ Sentosa Cove, for S$97.3 million. This was 47.4 per cent more than the book value of the asset.

 

Together with other divestments &ndash such as its stake in South Beach, the Piccadilly Galleria, and the Bespoke Hotel Osaka Shinsaibashi &ndash CDL is estimated to have monetised about S$2 billion of assets in 2025, according to a report by DBS last week.

 

The research house estimates that CDL will realise divestment gains of more than S$600 million &ndash or more than S$0.65 per share &ndash from these transactions and that it could pay special dividends of up to S$0.20 per share.

 

CDL&rsquo s core residential development and hospitality businesses are also expected to maintain their momentum in 2026 and beyond, according to DBS. &ldquo We foresee multiple tailwinds for the group in the coming years, with strong earnings visibility driven by largely pre-sold residential projects in Singapore and an attractive pipeline.&rdquo  

 

Based on DBS estimates, CDL is currently trading at 0.5 times its revalued NAV (RNAV). By contrast, UOL is trading at 0.7 times its RNAV. &ldquo We see scope for CDL to close the valuation gap with UOL,&rdquo DBS said.

 

The research house has a 12-month target price of S$11.80 for CDL. The property group closed up at S$9.10 on Tuesday (Jan 20).

 

As for the boardroom tussle that spilled into public view a year ago, DBS said that the concerns among investors sparked by the whole incident are fading away. &ldquo With the group executing well on asset-recycling initiatives and reinvesting into growth opportunities, we see management focus firmly on delivering growth for shareholders and restoring investor confidence.&rdquo

Tabitha Foo of DBS Group Research has kept her " buy" call and $11.80 target price on City Developments, which has gained more than 80% in the past year.

Even then, Foo believes that there' s more room to go, as compared to other big property companies, CDL is still trading at a bigger discount.

" We see CDL as a near-term tactical play with room for valuation catch-up," states Food in her Jan 15 note.

 

One-bedroom units at the 246-unit CBD project are priced from just under S$1.3 million for the long-delayed project

 

[SINGAPORE] City Developments Ltd ( CDL   : C09 +0.56%) will soon start previews for its long-awaited prime downtown project Newport Residences, with prices starting at just under S$1.3 million for one-bedroom units. 

 

Located along Anson Road in prime District 2, on the site of the former Fuji Xerox Towers building, the freehold luxury project will house 246 residential units set between the 23rd and 45th floors of the mixed-use development Newport Plaza. 

 

On the 10th to 22nd floors will be branded serviced apartments, with Grade-A offices and restaurants situated just below. Overall, Newport Plaza spans about 54,802 square feet with a gross floor area of about 655,000 sq ft. 

 

Newport Residences&rsquo smallest units, one-bedders sized from 431 to 581 sq ft, are priced just shy of S$1.3 million or S$3,012 per square foot (psf). 

 

Prices start at S$1.97 million or S$3,046 psf for two-bedders sized 646 to 926 sq ft S$3.24 million or S$3,304 psf for three-bedders sized 980 to 1,227 sq ft and S$8.28 million or S$4,006 psf for four-bedders of 2,067 sq ft. 

 

The biggest unit is a penthouse &ldquo bungalow in the sky&rdquo stretching 12,960 sq ft with a dedicated lift and two private car park lots, with price on application. 

 

Some 44 per cent of homes, or 108 units, are one-bedders. There are 87 two-bedroom units, 32 three-bedroom units,18 four-bedroom units, and one penthouse.

 

Newport Residences&rsquo launch follows a prolonged postponement. 

 

It was scheduled to start previews in April 2023, but plans were pushed back after the government hiked additional buyer&rsquo s stamp duty (ABSD) rates amid efforts to curb investment demand. 

 

Foreigners &ndash who typically account for a larger share of sales in the prime Core Central Region than in the city fringe and suburban areas &ndash now face ABSD of 60 per cent.  

 

&ldquo With the latest property-related measures... the market will need time to absorb the news,&rdquo a CDL spokesperson told The Business Times at the time. &ldquo We will monitor market conditions closely and unveil its launch at an appropriate time.&rdquo  

 

In a press release on Wednesday (Jan 14), CDL group chief executive officer Sherman Kwek said: &ldquo With strong and resilient demand for recent new launches in prime areas, such as our Zyon Grand project, the time is right to unveil this rare freehold offering with commanding views of the Central Business District and the future Greater Southern Waterfront.&rdquo

 

CDL and Mitsui Fudosan&rsquo s Zyon Grand condominium in River Valley recorded a take-up rate of 84 per cent at an average price of S$3,050 psf over its launch weekend in October 2025, making it one of the year&rsquo s top-performing new launches.  

 

Within Newport Residences&rsquo vicinity, four other projects are under construction: One Marina Gardens, Skywaters Residences, W Residences Marina View Singapore and One Bernam. Altogether, the five developments are expected to yield more than 2,400 residential units.

 

Most recently, in October, Malaysian giant IOI started marketing its 683-unit luxury project W Residences Marina View Singapore, with 100 units offered for sale in the first phase at prices starting from S$3,230 psf. This followed an earlier private preview for VIP and invited clients in July. 

 

Since then, five units have been sold at a median price of S$3,352 psf, caveats data showed. The latest transaction was for a 797-sq-ft unit for S$2.6 million or S$3,302 psf in late November. 

 

Earlier in April, the 99-year leasehold One Marina Gardens sold 353 units, or 38 per cent of its 937 units, at an average price of S$2,953 psf over its launch weekend. 

 

Data from URA Realis indicated that the median price of new non-landed private homes in District 2 was S$2,523 psf in 2025. For resales, the median price was S$2,172 psf, and sub-sales, S$2,726 psf. 

 

The most recent resale transaction was for a 603-sq-ft unit at the freehold Spottiswoode Residences at S$1.35 million or S$2,240 psf in late December. 

 

In the primary market, the latest sale was an 872 sq ft unit at One Bernam for S$2.16 million or S$2,481 psf in February 2025. 

 

Public previews for Newport Residences start on Friday, with sales bookings starting on Jan 31. The project is expected to receive its notice of vacant possession on Mar 1, 2030.

Mervin Song and Terence Khi of JP Morgan have turned even more bullish on CDL recently too, as they cheer the management' s focus on unlocking value, with prospects of a " strategic review" . In their Jan 6 note, they point out that CDL shares remain at an attractive 20% discount to its book value.

From an earlier target price of $8.20, they figure that CDL is now worth $10.75.

From proceeds of divestments last year, Song and Khi estimate that CDL will declare a dividend of 23 cents per share, which is above consensus estimates of 17.3 cents.

Helped by stronger residential sales, they estimate that CDL will be back in the black with FY2025 earnings of $83.9 million and to further double to $200 million for FY2026.

" With interest tailwinds and non-core asset sales, we expect a narrowing of the discount to CDL&rsquo s RNAV and CDL to trade to 1x book value," state the analysts, who have estimated a FY2026 book value of $10.70 per share.

" We believe the desire to repair reputations and CIT&rsquo s share price should galvanise CIT to be more proactive in executing a monetisation and deleveraging plan," add Song and Khi, referring to the high-profile boardroom fight that has been put behind.